Electronic Investor

Join the Money Crowd

It's been about a year since crowdfunding was broadened to include actual equity financing. What's happened so far?

It has been a year since the JOBS Act of 2012 went into full effect, creating a new class of investments for retail investors: start-up funding for prepublic companies. Once the purview of the very wealthy, the Jumpstart Our Business Startups Act allowed accredited investors—defined as those with $200,000 in annual income ($300,000 for couples) or a household net worth of $1 million or more, not including a primary residence—to provide angel investing. A primary motivation was to help create more employment opportunities.